The North East Uptick in demand for North East smaller offices for sale
market generally want decent quality spaces to support a desire to get their operation up-and-running quickly, without the need for much investment in a fit-out.”
Chris Pearson
Over the last two years, commercial property consultancy Naylors Gavin Black, has seen a 28% rise in enquiries for smaller, self-con- tained offices that are available for sale, says Partner, Chris Pearson.
This increase in demand is mainly – but not exclusively - being driven by office occupiers wanting to take advantage of Self-Invested Personal Pension (SIPP) benefits.
The interest, Chris tells us, is much higher in buildings that are under 5,000 sq. ft.
“For every office property we have available to let, we get at least double the number of enquiries for similar sized offices that are available for sale,” says Chris.
“There is an under supply of offices to buy and the potential purchasers in the
A recent example of this trend in action was an acquisition by North East property com- pany, Pattinson, which purchased a 5,799 sq. ft. office building on The Silverlink, in North Tyneside, that will form part of a SIPP.
The firm bought the office property follow- ing a period of significant growth including the purchase of three competitor North East estate agencies.
Pattison will see the property bring in residual income due to its 2,857 sq. ft. first floor being let to an existing tenant, Gameplan Financial. The firm will use the vacant first floor to accommodate additional employees that it recruited following expansion, including of its thriving national auction facility.
“Some of the obvious benefits of buying an office for your company, of course, are sim- ilar to those that exist when buying a house, instead of renting one. You benefit from the rise in its value. But getting the purchasing strategy right by having insights into the cur- rent market conditions, tax implications of
property investment, banking appetite and typical rates and terms is essential before taking the plunge.
“SIPPs have grown in popularity among sav- ers wanting more flexibility and control over their retirement investments. They give you control over where it’s invested but they are not suitable for everyone due to higher risks and responsibilities involved.”
Naylors Gavin Black teamed up with account- ants Armstrong Watson in March to host a seminar for SMEs on how to navigate the office property investment market.
There is limited stock of self-contained office buildings for sale in the North East but there are still a number of good opportunities, including properties in highly-sought-after locations like the Team Valley and Newcastle Quayside, and city centre.
Naylors Gavin Black provides an acquisition service for office occupiers.
FOR SALE Derwent House, Team Valley, NE11 0NL 5,100 sq ft.
For further information please contact Jessica Ross 07702 528 881
Jessica@naylorsgavinblack.co.uk
Chris Pearson 07834 328 678
chrisp@naylorsgavinblack.co.uk
COMMERCIAL PROPERTY MONTHLY 2025
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